Donald Victor Teschner - Page 9

                                        - 9 -                                         

          effectively conceded this issue.  See Rule 149(b).  While                   
          petitioner provided minimal detail about his income from other              
          activity, we surmise that petitioner performed activities similar           
          to those performed for the Stewart band.  In light of the fact              
          that no contrary evidence was presented, we sustain respondent’s            
          determination on this issue.                                                
          Employee Business Expenses                                                  
               We next consider whether petitioner is entitled to Schedule            
          A deductions for various employee business expenses.  Deductions            
          are a matter of legislative grace, and taxpayers must prove that            
          they are entitled to those claimed.  Rule 142(a); INDOPCO, Inc.             
          v. Commissioner, 503 U.S. 79, 84 (1992).  They must maintain                
          adequate records to substantiate deduction amounts.  Sec. 6001;             
          Meneguzzo v. Commissioner, 43 T.C. 824, 831-832 (1965).                     
               Section 162(a) permits the deduction of "ordinary and                  
          necessary" expenses paid or incurred during the taxable year in             
          carrying on any trade or business.  Generally, except as provided           
          by section 274(d), when evidence shows that a taxpayer incurred a           
          deductible expense, but the exact amount cannot be determined,              
          the Court may approximate the amount.  Cohan v. Commissioner, 39            
          F.2d 540, 543-544 (2d Cir. 1930).  The Court, however, must have            
          some basis upon which an estimate may be made.  Vanicek v.                  
          Commissioner, 85 T.C. 731, 742-743 (1985).                                  

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  Next

Last modified: May 25, 2011